By Daniel Goldstein | MarketWatch
Earlier this year, the Federal Housing Administration began reducing private mortgage insurance (PMI) premiums on its loans by an average of $900 a year. While the FHA loans typically come with low down payment requirements, they often have higher monthly payments as a result of the PMI that, unlike conventional loans, continues for the life of the loan, even when 20% equity is reached.
Now it appears the PMI reduction is having the desired effect.